Holiday red onion prices draw scrutiny

The Department of Agriculture–Bureau of Plant Industry (DA-BPI) is probing why import permits for red onions are being used far slower than those for yellow onions — a discrepancy officials said contributes to retail prices soaring above P300 per kilo ahead of the holiday season.

“We want to know the status of those import permits — if they plan to use them. If not, we will cancel the permits and award them to other importers to ensure sufficient domestic supply, especially at this time of year,” Agriculture Secretary Francisco P. Tiu Laurel Jr. said Wednesday.

Tiu Laurel said vegetable vendors report tight supply and rising costs, raising concerns that some importers may be holding back shipments, worsening consumer pain during peak demand.

As such, the DA vowed to ensure that unused import permits will be cancelled and redistributed to other importers, including Food Terminal Inc., to fast-track onion importation and relieve the tight market.

At present, landed costs from China are estimated at around P60 per kilo.

BPI Director Gerald Glenn Panganiban said intensified market monitoring is underway after warehouse reports showed low farm-gate and wholesale prices—conditions inconsistent with the sharp spikes in retail markets.

The bureau is coordinating with the DA Inspectorate and Enforcement Office and the Agribusiness and Marketing Assistance Service to track supply, ensure fair pricing, and safeguard food security.

The DA previously issued Sanitary and Phytosanitary Import Clearances (SPSICs) for 69,040 metric tons (MT) of red onions and 42,261 MT of yellow onions. 

Of these, the BPI has granted 1,202 SPSICs for red onions and 751 for yellow onions.

But usage data exposes a stark lag for red onions. From August through 20 November, importers used 443 permits covering 21,145 MT—mostly yellow onions. By contrast, only 192 red onion SPSICs were consumed, totaling 12,824 MT since September.

All SPSICs must be used by 15 January 2026, to prevent hoarding that could manipulate supply.

The timing also ensures imported onions do not coincide with domestic harvests, which could depress farm-gate prices and harm growers.

The gap is striking given monthly demand: yellow onions average 4,000 MT while red onions run around 17,000 MT.